2022-03-29 09:28Financial Performance - The company achieved a record global sales total of $13.203 billion in 2021, representing a 34.6% increase from $9.812 billion in 2020[10]. - Net profit reached $1.099 billion, a 37.2% increase compared to $801 million in the previous year, achieving a new high for the fourteenth consecutive year[14]. - Basic earnings per share rose to $60.04, up 37.1% from $43.80 in 2020[10]. - Total sales reached $13.2 billion, an increase of 34.6%, with a two-year growth of 72.2%[15]. - EBITDA increased by 37.2% to $1.2 billion, with an EBITDA margin improvement of 17 basis points to 9.0%[18]. - The electric tools business accounted for 90.6% of total sales, growing 37.0% to $12 billion[15]. - The floor care and cleaning business saw a revenue increase of 14.8% to $1.2 billion, with an operating profit of $29.2 million, reflecting a commitment to high-quality cleaning products[121]. - The company’s revenue for the year was $13.2 billion, an increase of 34.6% from $9.8 billion in 2020[123]. - Net profit attributable to shareholders was $1.099 billion, up 37.2% from $801 million in 2020[123]. - Total operating expenses for the year were $3.943 billion, representing 29.9% of revenue, slightly up from 29.5% in 2020[123]. Market Growth and Strategy - North America recorded a sales growth of 33.7%, contributing 77.4% to total revenue[14]. - Europe saw a 41.1% increase in sales, accounting for 14.8% of total revenue[14]. - The company is focusing on strategic investments in logistics, new product launches, productivity enhancements, and regional expansion[8]. - Significant investments were made in expanding production capacity, new product development, and market promotion to support the 34.6% sales growth[19]. - The company is focused on transitioning users from gas-powered and manual tools to rechargeable electric tools, enhancing pricing power and gross margin[21]. - The company reported strong performance in 2021 and is confident in achieving robust sales and profit growth over the next five years[24]. - The company achieved breakthrough growth in the European market, expanding its role in the rechargeable product market beyond the US core market[25]. - The company is focusing on expanding its market presence outside the United States, targeting regions with high growth potential[127]. Product Development and Innovation - The introduction of high-margin new products and rigorous product portfolio management contributed to the gross margin growth[13]. - The flagship RYOBI 80V HP Zero-Turn Riding Mower was developed from scratch, significantly enhancing power and performance while adding new features[24]. - The MILWAUKEE M18 platform now includes 251 products powered by the M18 battery, creating a network effect that attracts new customers and builds loyalty[24]. - The company continues to invest in new product development, logistics, and regional expansion to strengthen its market leadership[25]. - The M12 23GA pin nailer is the lightest cordless nailer on the market, providing precision and power for professional carpenters[33]. - The M18 FUEL platform continues to expand with new high-performance products, including wet/dry vacuums and advanced nailers[43]. - The REDLITHIUM battery technology offers superior runtime, responsiveness, and lifespan compared to other professional lithium batteries[44]. - The company is focused on innovation and user collaboration to develop disruptive products that enhance productivity[31]. - The launch of the MILWAUKEE MX FUEL equipment system allows entry into the multi-billion dollar lightweight equipment market, replacing traditional gas and AC products with revolutionary battery technology[48]. - The new USB LITHIUM platform provides lightweight, portable tools that can be charged via USB-C, further expanding RYOBI's product offerings[64]. Environmental Commitment - The company committed to reducing absolute Scope 1 and Scope 2 emissions by 60% from the 2021 baseline by 2030[17]. - The company is committed to reducing greenhouse gas emissions by 60% by 2030, with significant progress already made towards this goal[25]. - The company is actively investing in clean technologies and developing products with more sustainable characteristics as part of its decarbonization efforts[138]. - The company has established comprehensive Environmental Management Systems (EMS) at all production sites to manage environmental impacts[138]. - The company has no ESG-related non-compliance cases reported in 2021, indicating strong governance practices[145]. - The company emphasizes the importance of climate change, resource management, and sustainable product development as key environmental issues[138]. Corporate Governance - The company has complied with all provisions of the Corporate Governance Code as of December 31, 2021[168]. - The board consists of five executive directors, two non-executive directors, and four independent non-executive directors[169]. - The company emphasizes the importance of corporate governance in maintaining sustainable development[168]. - The board is responsible for overseeing financial performance through annual budgeting and ongoing performance reviews[168]. - The company has established a framework for effective risk management and internal controls[168]. - The board is committed to continuous professional development and training for directors and senior management[168]. Shareholder Value and Compensation - The company achieved a compound annual growth rate (CAGR) of 23.1% in revenue and 25.0% in earnings before interest and taxes (EBIT) over the past three years, outperforming 97th percentile of peers[187]. - The total shareholder value increased by over HKD 75 billion in 2021 alone[191]. - The company awarded 1,000,000 shares to Mr. Galli as part of the annual incentive plan for outstanding performance in 2021[186]. - The company’s five-year total shareholder return outperformed any of the twenty peer companies analyzed[183]. - The compensation committee emphasized that senior management's remuneration is aligned with shareholder interests, based on multiple operational and financial metrics[183]. - The company plans to grant an additional 1,000,000 shares annually to Mr. Galli if financial performance standards are met from 2021 to 2026[188].